Chapter 6 Section 2-3 Quiz
What do treasury bills, treasury notes, and treasury bonds have in common?
All are issued by the federal government
The most risk - free investment is
An insured account in a local bank
People who act as go-between for buyers and sellers stocks and bonds
Broker
Increase in value of an asset from the time it was brought to the time it was sold
Capital gain
A major benefit of a private or personal pension plan is
Deferred federal income tax
Spreading of investments to lower overall risk
Diversification
The return a stockholder receives on the amount invested in a company is a
Dividend
Private retirement plan that allows people to save certain amount of untaxed income with tax-deferred interest
IRA
The interest earned on contributions to a Roth IRA
Is tax-free forever
Retirement plan for self-employed individuals
Keogh plan
Investing savings in several different types of accounts
Lowers overall risk
Company that pools the funds of many individuals to buy stocks, bonds, or other investments
Mutual fund
The trade-off for investing in real state is
Not being able to get your money back quickly
An electronic marketplace for stocks is the
Over the counter market
Company plan that provides for retirement income for workers
Pension plan
Private retirement plan that taxes income before it is saved
Roth IRA
Bonds issued by the federal government as a way of borrowing money
Savings bond
Which of the following is purchased half the face value?
Savings bond
Corporations are formed by
Selling stock
People who have invested in a corporation and own stock
Stockholders
